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As you know or if you’re not already aware, Edmunds.com is going direct to dealers. They’re cutting out the middle man (AutoUSA, Dealix and Autobytel) and coming after our business with a newly hired sales team.

Dealers, WE/YOU have a very important choice to make that WILL help determine change (good or bad) to our industry. Keep in mind, Edmunds.com has never been one to treat the dealer fairly.

I’ve been watching this for a while, and it’s not rocket science, but follow me…

A few years ago, Zag is re-selling leads to dealers per lead basis. Zag changes their subscription model and starts charging dealers on a per sold basis.

“So I don’t pay unless I sell a car?” – nope. That is music to a dealer’s ears!

However, in order to determine what to charge you, Zag needs access to your DMS in order to match-up customer sold data (dare they say “transactional data to the dealer”) with the leads they’ve sent you over the last few months.

Dealers don’t think twice about signing up for the new Zag subscription model. But not thinking twice is the potential issue. You just signed an agreement allowing a 3rd party company to proudly scrub your DMS for YOUR transactional data! Only to use this data to power a CONSUMER facing price analysis tool – TrueCar!

TrueCar Inc. is an automotive solutions provider focused on changing how cars are sold by providing a significantly better customer experience while helping qualified dealer partners to gain incremental market share and reduce costs. TrueCar.com is a transparent, visual publisher of new car transaction data.

How much more transparency does our business need? Perhaps this is nothing more than the evolution of our business.

I’ve spoken to several higher-ups at TrueCar and trust me, this is a determined company. They “want to change the way cars are sold and bought”. Yeah, we’ve heard this before, but this time we dealers need to listen and pay attention.

The challenge; how does TrueCar turn TrueCar to be a household brand?

Let’s review the top visited online automotive research sites …

In order for TrueCar to become a household name, they need a platform to brand themselves. Edmunds.com fits the bill.

Before I go any further, allow me to inform you the following is pure speculation on my part…

TrueCar’s people speak to Edmunds people about a possible synergy between the two. They consider a deal UNTIL Edmunds.com say “Whoooaa – wait a second, we already have a TrueCar piece and it’s over a decade old”. TMV – True Market Value.

For sure you haven’t forgotten about TMV have you?

Edmunds.com quickly figures out exactly what they need to do. Sell direct to the dealers. And in return suckering dealers into allowing them to pull their transactional data.

Click here for a copy of the Edmunds.com Dealer Agreement For Dealers.

TrueCar already claims to have over 40% of all transactional data In the United States. Dealers allowed this to happen due to our ignorance and oversight.

Are you going to allow Edmunds.com to have YOUR data as well?

The Truth About CRMs…

Customer relationship management (CRM) software is always on a dealership’s agenda in our 20 Groups, and they almost always come up in every single workshop. And this is how it should be — it is one of the most important tools and resources that a dealership has in its arsenal for automotive Internet sales. Over the last 12 years, I’ve seen Internet lead management (ILM) and CRM technology companies evolve to have amazing offerings.

But over the years I still get the same question “What is the best CRM for dealerships?” The answer is complex, because there are different “flavors” of CRM, and what’s right for one dealership can be the wrong fit for another; we’ll get to that in a moment. The goal of a CRM package is to reduce redundancy by offering with multiple tools and consolidate to one centralized platform. That means if you have multiple tools / products that do the following:

• Digital or manual showroom control system (desk log)

• Service reminders

• Permission-based e-mail campaigns

• ILM tools

• Phone up tracking system

• Inventory management system

• Call tracking software

• Service appointment system

• Data mining

• BDC campaign management

• Special finance

• Reporting and analytics

With the right CRM, you don’t need a separate tool to perform all these functions. Theoretically, the right CRM lets you consolidate all of this with a single technology platform. The benefit here is multiple. It’s certainly cheaper to pay for one CRM tool than having to purchase numerous tools individually. While an individual tool will almost always be cheaper than a full CRM, if you add up all of individual tools out there, the total cost would be much more expensive than the average cost of a CRM.

One of the most powerful benefits of using a single CRM solution, however, is the fact that all information is on one centralized platform. For example, if you have a prospect that sends an Internet Purchase Request, the CRM will have that in its database. If that prospect decides to walk in the dealership and is “logged” into the dealership’s CRM as a showroom prospect, it will be recognized immediately that that prospect was originally an “Internet opportunity.” Furthermore, if that prospect was ever in the dealership’s service department or did any type of business with that dealership, it would show up in reports. Most CRMs will calculate the amount of profit made from each customer, and the dealership can see the whole picture of a customer or prospect. This is important because if the dealership has the full picture on a situation, it can make better business decisions.

Not all CRMs are perfect fits with all dealerships, though. CRMs can be designed to focus more on one area of sales than another. If your dealership also focuses on this area, it’s a good fit. If you don’t have a particularly strong Internet sales department, but your CRM specializes in Internet lead management, that can be a bad fit. You have to do your research before committing to a CRM solution.

The best advice I can give is to stop trying to shove a round peg into a square hole. Too many dealers out there buy one tool, and then try to make it do what it wasn’t designed to do. I’ll give you an example. I have a dealer client that purchased a tool that was 100-percent designed for special finance. It was designed for a “special finance” depart ment, and was designed by a “special finance” branded company. But the dealership uses this tool for its entire store, and they depend on it for their Internet sales department. The crazy thing about this situation is that the dealership doesn’t even have a “special finance” department. They bought this tool without researching the situation, and are now paying the price.

Here are some steps you can take before you buy a CRM:

• First, simply ask yourself “What do we want or need a CRM for —Internet, sales, service, BDC?” When you answer that question, find a CRM that specializes in that area of need.

• If, for example, you have an extreme need for Internet lead management, compair CRM tools that specialize in that area with each other. Find out why they feel they specialize in ILM, and find out what credentials they have for ILM.

• Get references, and then actually call other dealers using the tool. Ask for references who aren’t in their marketing, and speak to the actual department you are investigating. Don’t ask the dealer principle or GM about Internet lead management; ask the Internet or BDC director. Get their real opinion from a day-to-day operational level.

• Accept the fact that you might need to have more than one tool. For example, I have a lot of dealer clients who have multiple tools. They might have a full CRM and an ILM tool, as well. Yes, this goes against the myth that a CRM can do everything, you’ll be better off in the long run with the right tools for your dealership.

Look at it this way: You wouldn’t go to the ophthalmologist if you had trouble breathing. The ophthalmologist is a doctor, but that’s not his specialty. Use this same mindset when selecting your CRM.

Please e-mail or call me if you have any questions about CRM or if you would like a free strategy session/assessment on your current CRM solution.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at sbradley@autosuccessonline.com.

http://www.dealersynergy.com

http://www.dealersynergy.com
http://www.automotiveinternetsales.com

Automotive Internet Sales Process (First 30 Days) and WHY...

http://www.automotiveinternetsales.com
http://www.dealersyenrgy.com

"Ace of Spades" Example - Automotive Internet Sales (Phone Sales) Process

This is one of my favorite examples... I have been using it for YEARS :)

"Ace of Spades"... This example basically explains the concept of "Begin with the end" in mind!!

Watch this video a couple of times, it is awesome!!

I had an AMAZING class of trainees at Vara Chevrolet in San Antonio Texas!!

Behind The Scenes

Have you ever watched a “Behind the Scenes” TV show or DVD chapter?  Ever seek to find what goes on in a studio, in a locker room, or in the white house during a closed door session?  Sure you have.  We all do because the analytical parts of our human brain want to know how things work.  Today I want to talk to you about how I…as a national phone trainer…was developed.

My name is L.A. Williams and I am a long time music producer and certified engineer.  All day and night I help singers, song writers, poets, instrumentalists … people with making themselves sound great!; whether live or recorded.  I gave them countless ideas, suggestions and examples of what they needed to sound like to be successful and to make the money they wanted to make.  The founder of Dealer Synergy (Sean Bradley) approached me with the idea of, “I want to do the same for our industries internet coordinators.”

To add to my credibility, Sean denotes that I am visually impaired, therefore audio is my world.  We agree that if I can train pop artists on how to sound good in the studio, then I can definitely train willing internet coordinators on how to sound great on the phone.

See, for blind people like me (And your phone customers), the science of communication works a little differently.  We must understand that we lose the 55% body language and other visual queues, so now that normal 38% voice inflection and 7% words we use become SO much more integral in how we need to communicate.  I can help the sighted community understand and implement strategies to assist with that. :)  Enough with all the technical jargon…let me invite you into my personal life and show you the real reason why I could be the best individual to coach your internet coordinators.

As a visually impaired gentleman, I never really fancied going out and meeting females.  I was sure I could charm them and all, but I felt unequivocally that my strength was my smooth, deep, richly textured voice.  I knew that I had great conversational skills and would meet lots of women on chat lines.  Follow me now, the whole purpose of talking on the phone with these ladies was to get a face to face meeting.  I engaged them in great conversation, I was patient and allowed them to talk and express themselves, I answered their questions and gave them a great value package proposition.  By the time we met in person, the deal was already done, I just had to not mess it up.  That’s the power awesome internet coordinators hold.

As internet coordinators we must understand, that our job is not to cell cars over the phone.  We are not directly in the product business.  We are however in the business of selling appointments to meet our establishment.  The comedian Chris Rock says “When you meet a person, you don’t really meet them…you meet their representative.”  Let’s all make sure that we’re being great phone representatives of our dealerships.

Another saying, “You Never get a second chance to make a first impression.”  Effective phone skills are essential to creating a positive first impression  which sets the tone for the rest of the customer’s interaction with our organization.  A telephone call is often your customer’s first impression of your organization.  Don’t leave it to chance!  Implement an effective phone process from Dealer Synergy and sell more cars more profitably more often!

http://www.dealersynergy.com

http://www.facebook.com/dealersynergy

http://www.dealersynergy.com

http://www.internetsales20group.com

http://www.dealersynergy.com

http://www.internetsales20group.com

http://www.dealersynergy.com

http://www.internetsales20group.com

http://www.dealersynergy.com

http://www.internetsaels20group.com

Many dealers ask me for help in retention measurement, and statistics surrounding Customer Loyalty Indicators.

Two important indicators of Automotive Dealership customer loyalty are the purchase of additional service after the sale by Members and multiple vehicle purchases.

In the automotive dealer sector, these are also sources for the greatest margin, so they’re critical not just as indicators of customer satisfaction but as profit drivers in their own right. Little profit is made on the sale of the first vehicle. Dealerships must rely on repeat service and additional vehicle sales to make the customer life cycle profitable.

However, most auto dealers haven’t the vaguest idea which car buyers are loyal service customers at their dealerships, or multiple car buyers (especially if they're a multi rooftop autogroup). On average, dealers retain only 30 to 40 percent of post-warranty service dollars on vehicles they sell. What’s more, remarkably few dealers track service purchases systematically. As a result, as little as 3% of vehicle buyers will purchase again from the same dealership.

While it may be necessary to keep sales separate from an organizational point of view, it is very important that their tracking systems be linked. One simple way to do this is through a digital loyalty solution like re:member group’s BEDROCK® and ASPIRE® platforms. While re:member group makes no claim in having a CRM solution (see DealerSocket for the best one in my opinion), our loyalty solutions do identify repeat buyers in all departments and can assist in determining a lifetime customer value to Members.

The information Service Advisors acquire should easily be cycled back to encourage salespeople to target buyers who have remained loyal service customers. In addition, incentive systems should identify the lift that dealerships receive as a result of implementing a loyalty program in both service and sales. The keystone measurement in this case should be repurchase loyalty, as this is the best possible indicator of customer loyalty.

The Walser Automotive Group in Minneapolis, Minnesota makes customer loyalty a significant part of their overall marketing strategy. Thirty-one Percent of Walser’s Customers purchased more than one vehicle between 2005 and 2009, representing fifty-six percent of Walser’s Total Vehicle Sales. In that time, Walser has increased their repurchase loyalty by four percent.

Furthermore, Sixty-nine percent of Walser’s customers continue to service their vehicle after the sale.

Recall what loyalty expert Fred Reichheld claims: a five percent increase in customer loyalty can yield an increase in profitability between twenty-five and eighty-five percent.

What are you doing to increase your customer loyalty? Or, what is your customer loyalty percentage?

Paul Long

President

re:member group

cell: 612.221.0463

email: paul@remembergroup.com

www.paulnlong.com

www.remembergroup.com

I met Randy McPherson for the first time in February, 2003, at the Interchange Building in St. Louis Park, MN. The interchange building was the “headquarters” for all the Walser Automotive Group’s affiliate companies, which Randy headed up.

I walked into the offices on the 18th floor and was greeted by a receptionist named Rita. Immediately in front of me was a large window looking into a board room occupied by (mostly) men in suits, obviously conducting a meeting. The board room looked out onto the Minneapolis downtown skyline.

I noticed one gentleman right away. He was wearing a pressed flannel shirt and slacks. he had a smooth head and a groomed goatee. Clearly a renegade. I took a seat in the waiting room.

When the meeting adjourned, the men in suits filed out. The gentleman in the pressed flannel shirt walked out, and greeted me warmly. “Hi, Paul, I’m Randy McPherson,” he said.

We went back to his office, and had a nice conversation. Among the family photos and hunting relics in his office, something caught my eye: an empty guitar stand in the corner behind his desk.

The interview went the way most first interviews go, which is to say pretty innocuous. We talked about the Walser Car Club, and how it was birthed. Since the inception in October of 2002, it hadn’t had solid leadership to spearhead enhancements, new partnerships, or growth to new dealerships. In fact, there wasn’t 100% compliance among Walser’s 10 locations in the Twin Cities, Randy said. They were looking for someone to build process, partnerships and new business.

We talked about my experience in sales, e-commerce and loyalty. I told about my experience in building loyalty partners. But Randy became particularly interested when I discussed points–the ability for Walser customers to earn points when they get their vehicle serviced, OR whenever they make purchases through participating merchants, like rental cars, hotels and retail.

This was the first of many conversations between Randy McPherson and me in scoping out what is today the products the re:member group offers.

“What I’d like you to do,” Randy said, “is to put together a business plan and meet with my CFO and me in two weeks. There’s another candidate that we are considering.”

As I left, I mentioned the empty guitar stand in the corner. “Do you play?” I asked.

“Oh yeah,” Randy said. “Do you? What kind of guitar do you play?”

“I play a Martin D-35 that my wife gave me for a wedding present,” I said. “How about you?”

“I play a McPherson,” Randy said.

It was mid February but as I walked out of the Interchange Building that late afternoon, I think it started to rain.

http://www.internetsales20group.com

Jeep® Brand Reaches Major Social Media Milestone: First Domestic Automotive Brand With More Than 1 Million Facebook Fans

SOURCE Chrysler Group LLC

AUBURN HILLS, Mich., Feb 18, 2011 /PRNewswire/ -- The Jeep® brand reached an unprecedented domestic automotive milestone today, as fans on the brand's Facebook page reached and surpassed the 1 million mark. In achieving more than 1 million fans on its Facebook page, the Jeep brand exceeds the next closest domestic automotive brand fan's total by more than 450,000.

"We are honored to be the first and only domestic automotive brand that can claim more than 1 million Facebook fans," said Mike Manley, President and CEO – Jeep Brand, Chrysler Group LLC. "This reinforces the fact that Jeep is clearly one of the most well-known and loved brands throughout the world, and comes as we continue to gain sales momentum and begin to celebrate the 70th anniversary of the brand."

In 2010, the Jeep brand experienced triple digit growth in its fan base on Facebook. The brand continues to foster a vibrant and innovative social community for its passionate fans and owners. In July, Jeep brand fans tested the size limits of Facebook's photo album, "Photos by Others." Fans exceeded the 20,000 photo-limit resulting in a need for Facebook to accommodate the increased number of images.

Along with Facebook, the Jeep brand's social media initiatives include presence on Twitter, You Tube and foursquare web sites. The Jeep brand was the first automotive brand to have an official profile on foursquare.com, the popular location-based social network that allows users to "check-in" at any location. The official Jeep brand You Tube channel is among the top 10 sponsored-channels with over 4.3 million video views.

In 2010, Jeep vehicle sales improved 24 percent globally, and 26 percent in the U.S. versus 2009, with double-digit sales gains for each vehicle in the brand's lineup.

For 2011, Jeep has introduced all-new or significantly refreshed versions of each of its vehicles. With the greatest range of SUVs under one brand, the Jeep vehicle portfolio consists of:

• Compass: A compact SUV with a new sophisticated, premium design for 2011, the Jeep Compass delivers unsurpassed 4x4 fuel economy, freedom, utility, and Jeep 4x4 cachet and capability, all at a terrific value
• Grand Cherokee: The most capable and luxurious Grand Cherokee ever, balancing legendary Jeep capability with sophistication to deliver a premium driving experience for all adventures 
• Liberty: The mid-size SUV from Jeep that offers Jeep Trail Rated® 4x4 capability combined with on-road refinement and numerous innovative features, including the industry-exclusive full-length Sky Slider® open canvas roof 
• Patriot: A compact SUV delivering the fun, adventure and value only Jeep can offer, with unsurpassed 4x4 fuel economy and segment leading capability 
• Wrangler: The icon of the Jeep brand, it remains true to its heritage as the original fun-and-freedom machine. For 2011, it boasts an all-new interior, and an available premium body color hardtop for Sahara models
• Wrangler Unlimited: The only four-door convertible SUV on the market with room for five adult passengers, Wrangler Unlimited receives an all-new interior for 2011 and an available premium body color hardtop for Sahara models

Jeep Brand

Built on seven decades of legendary heritage, Jeep is the authentic sport-utility vehicle (SUV) with class-leading capability, craftsmanship and versatility for people who seek extraordinary journeys. The Jeep brand delivers an open invitation to live life to the fullest by offering a full line of vehicles that continue to provide owners with a sense of security to handle any journey with confidence.

Whether identified by their ownership of multiple Jeep vehicles, or their regular attendance at branded events, or by their abundance of Jeep gear – branded products from clothing to baby strollers – Jeep owners all have one common trait: a Jeep vehicle delivering benchmark, all-weather capability that allows them to go anywhere and do anything. It's not unusual to see Jeep owners sporting a bumper sticker that reads, "It's a Jeep thing...you wouldn't understand."

To meet consumer demand around the world, all Jeep models are sold outside North America – and all are available in right-hand drive versions and with gasoline and diesel powertrain options. Chrysler Group LLC sells and services vehicles in approximately 120 countries around the world.

©2011 PR Newswire. All Rights Reserved.

In early 2003, I had a great job at Northwest Airlines, managing partnerships for their award winning WorldPerks program. I worked with a great team of people and loved what I did. I had finished my MBA from the University of St. Thomas in Minneapolis, MN in the summer of 2002. And my wife had just given birth to our first child in November 2002. Life was great, if not hectic.

I was privileged to work with some of the best loyalty marketers on the planet. My primary WorldPerks partner was U.S. Bank, which issued the WorldPerks Visa, and I handled a $200 million book of business for this partner alone. And since U.S. Bank was such a behemoth, I was able to develop co-partnerships with all the other partner categories, including car rental, hotels, communications, and the WorldPerks Mall.

My Pet Project, my passion, the WorldPerks Mall. The WorldPerks Mall gave me the opportunity to work with merchants in all categories, and gave WorldPerks Members the ability to earn miles by doing the things they did every day. I built partnerships with hundreds of “non-traditional” merchants in categories like department stores, clothing, electronics and toys. And then there were services that allowed Members to earn points…

MilesAbove was WorldPerk’s answer to small regional merchants who wanted to play in the mileage game. You’re a plumber? Give miles for Members using your service. Own a Co-op? Give miles to your patrons for their business. We had three “no go” categories: alcohol, fur, and auto racing. Other than that, partner development was fair game.

Originally managed by Carlson Marketing Group, MilesAbove proved too expensive to have an outside vendor manage it’s partner development. I brought it in-house, and automated the purchase of miles for companies wanting to play. An unintended benefit allowed Members looking to “round-out” their accounts to buy miles. The best professional development benefit was having the privilege of working with people from one of Mark Lacek’s companies, MilePoint, to build the first ever Buy Miles engine. We sold $1 million dollars in miles in the first 6 months after revamping MilesAbove. Carlson, a trusted marketing partner, was instrumental in process and collateral development. It was a team firing all pistons, and a high point of my tenure at NWA.

All of the merchant partnerships we built required a form of payment, which brings me full circle. WorldPerks Visa was an “anchor store”. It’s what every other partnership revolved around. My team and I loved building co-partnerships and finding creative ways to allow Members to earn miles without ever having to get on a plane.

Life was great. I loved my job, and the people I worked with were among the brightest and most creative I had ever met. I was having fun with my young family, traveling wherever and whenever we wanted.

“Marry me, fly for free.” My wife still reminds me of the promise I made to her.

http://www.dealersynergy.com 

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